Reddit was recently valued at $10 billion after closing a non-public fundraising round and preparing IPO Seeking for $15+ Billion Early Next Year.
Reddit Inc, an American social media platform focused on news aggregation including Cryptocurrency, Bitcoin and TheCoinrise subreddit and online page rating, is reportedly preparing for a $15 billion-plus initial public offering (IPO) early next year. In keeping with news outlet Reuters, people aware of the matter have confirmed that the corporate is seeking to rent investment bankers and lawyers to help within the IPO.
Reddit was recently valued at $10 billion after closing a non-public fundraising round. in a very recent interview with NYT, Steve Huffman, Reddit Chief military officer said that the corporate is preparing for an IPO. However, he failed to disclose the timing to investors.
The company is seeking to rent market experts to assist make the IPO a hit. However, the informants cautioned that the timing and therefore the size of the initial public offering are subject to promote conditions. Moreover, the quantity of shares sold and also the set price will depend upon the market demand.
Founded back in 2005 by Huffman, Alexis Ohanian, and therefore the late Aaron Swartz, Reddit has grown to a one-stop socializing platform. However, the platform faces fierce competition from the likes of Twitter and Facebook as they supply almost similar services.
However, the platform has over the years gained the trust of voluminous users thanks to its credibility. in step with the corporate, it’s over 52 million daily active users and over 100,000 communities, or ‘subreddits,’ as of October last year. the quantity is probably going to be higher this year after the meme stock frenzy that began earlier this year.
Reddit and Its Performance prior to IPO
As the company prepares to travel public after years of being a highly valuable private company, investors would have an interest in its earnings results and projections. Reddit makes the biggest part of revenue from advertising, which accounted for $100 million in revenue during the 2ndquarter.
Worth noting, the figure was 3 times beyond what the corporate reported during the second quarter of 2020. a sign the corporate has seen a large growth in users and advertisers.
Some notable private investors who have invested in Reddit are following – Fidelity Investments, Andreessen Horowitz, Sequoia Capital, and Tencent Holdings.
In a bid to stay competitive, the corporate announced a partnership with the Ethereum ecosystem to make scaling tools on the blockchain network. Additionally, the platform previously introduced community tokens supported Ethereum’s ERC20 system.
Earlier this year, the corporate hired Drew Vollero, Snapchat’s former executive, as its chief treasurer.